89
views

Real Coins vs. Shitcoins – A Safer Way to Invest in Cryptocurrency

According to CoinMarketCap, the entire cryptocurrency market is worth a combined $250 billion today, 26th May 2020. The global cryptocurrency market is expected to grow with a CAGR (Compound annual growth rate) of 32% from 2019 to 2024.

The major drivers of growth in the crypto market are immutability and transparency of the distributed-ledger technology, growing adoption in developing countries, an increase in venture capital investments, and fluctuating monetary regulations. 

Before you venture into investing in crypto, it is important to understand some hooks in the industry to protect yourself from losses and frustrations. The following article will guide you on good and bad cryptocurrency investment options by distinguishing real coins and shitcoins.

Real Coins

Real coins refer to any coin whose motives behind their creation are clear, sincere, and well-articulated in the crypto spectrum. This differs from other coins (fake coins) that are mostly developed by forking – taking the existing code of a given cryptocurrency (mostly litecoin) and tweaking it to score.

Many in the industry consider all-but-Bitcoin as shitcoin. However, this notion doesn’t really hold since other Real Coins offer profound technologies and take the industry by a wave. For instance, many will not believe that Ethereum was once viewed as a Shitcoin.  

Bitcoin and Ethereum are now the largest “Real Coins.” While crypto tribalists try to present them as the only perfect coins, these cryptocurrencies have some flaws such as low processing speed and scalability issues. Therefore, it is worth noting that other real coins exist with faster transaction periods and have proven themselves as fruitful crypto projects to invest in. 

Shitcoins

A shitcoin refers to a scam cryptocurrency described as a bad investment choice. Shitcoin can also mean a cryptocurrency that serves no particular purpose. 

These are coins with no use case, whose value could rise exponentially overnight. The masterminds sell their coins upon the increase of the value. Soon after, the price sinks dramatically, causing the investors who held on for longer or bought the coins at higher prices to make massive losses. An example of a shitcoin is OneCoin.

Identifying a Shitcoin

The cryptocurrency industry has grown potentially with new markets that make it hard for investors to draw parallels between genuine and fake coins. 

Besides, the underlying blockchain technology used to manage cryptocurrencies may not be common for many investors, therefore, creating room for maltreating. For novice investors, identifying the genuineness of a cryptocurrency is a difficult task.

While the crypto market tends to be unstable in nature, with all coins going through cycles, some patterns show a coin could be a shitcoin. The indicators include:

A Poor Website

A website is the basic online representation of a person or a business. Any serious business will not feel the pinch investing in website development and design. 

A good website includes all information concerning an entity using understandable language, maps, and multimedia aids. It is also necessary that the site has essential pages such as “About” and “Contact Us” pages. Any cryptocurrency website with none of these basic features should trigger doubt.

A poor website could suggest inconsistency of the project and the unpreparedness of the team. Also, it shows possible hiding of details and secrecy, which is a sensitive concern in online investments. 

Poorly done WhitePaper

A white paper is an in-depth guide about a project that states the problem the project aims to solve and provides a solution. It is the most important deliverable in any project. 

A real whitepaper has:

  • A Vision that states the problem that the project team is trying to solve,
  • An overview of the proposed technical solutions to the problem and support statements,
  • Details of the technical implementation of the solutions,
  • A Blueprint for the delivery,
  • Technical details: including coin type, total amount, coin mechanisms, and soon,

Having a look at the whitepaper of a crypto project can help a big deal in recognizing shitcoins. Indicators of a shitcoin in a whitepaper include unrealistic expectations, incompetence, cheap grammatical mistake, or a plain scam setting.

Public Complaints

How people talk about a product is a good pointer to what it is. From word of mouth to online reviews, there are multiple ways to find what people say and think about a cryptocurrency before investing in it. A simple google search of the coin will present multiple links to blogs and Q&A sites that serve as great sources of information.

Lack of Product Demos

A major risk with cryptocurrencies is that you are placing an investment on a promise. Since high amounts of cash are involved in these investments, you should go for a highly acclaimed coin, and, if possible, the project should offer you a demo.  

Shitcoin developers avoid things that delay their projects, which could reveal their dirty games. While it is not a primary indicator, lack of product demos can help decide where doubt exists.

A Github repository is also a great place to track the activity of the owner. Most shitcoins have inactive repositories.

Conclusion

Cryptocurrency continues to gain interest since the successful implementation of Bitcoin. The sector has grown exponentially, with projections pointing to better days ahead. This calls for investors to consider venturing into this space and being alert of fake dealers. 

Bitcoin live price
Btc
Bitcoin
$35.494
price
0.31547%
price change
BUY NOW

The past has seen several shitcoins making it into the markets and being mistaken for real coins. But with this information, you are now better positioned to tell them apart and..invest real!

Stay up to date with our latest articles

More posts

What Is CBDC In Crypto?

The cryptocurrency trading revolution exploded more than ten years ago and led to an almost unprecedented economic and financial earthquake. As a result, people are learning to change their approach to payment and investment systems, pushing up the price of many cryptocurrencies. Such a rapid change has not gone unnoticed on the boards of the world's major central banks. In fact, in an increasing number of countries, central banks are working on launching centralized digital currencies, known as CBDC. This…

How Social Leaders on Shrimpy help Investors Maximize Profits from Crypto Trading

The emerging trend of social trading allows millions of investors to interact with their peers and learn from accomplished traders in the crypto market. Every market participant wants to become a profitable crypto trader and maximize earnings from the ongoing crypto boom. Unfortunately, navigating the highly volatile space while grasping the complex learning curve that involves fundamental/technical analysis can be rather daunting. Becoming successful in the crypto market requires time to develop a working strategy that empowers investors to execute…

Decentralized Exchanges 2022: Which is the Best Crypto DEX to Trade on?

Market experts believe that the survival and growth of crypto largely depend on decentralization. The good news is that decentralized exchanges or DEXs have become highly popular, and the crypto market sees this as an opportunity to save the essence of traditional blockchain. Each decentralized exchange platform has the potential to revive and thrive crypto market. Moreover, each new DEX platform comes with its own set of features. There are several methods to use DEXs and make money.  Decentralized exchange…

Top Crypto Exchanges for Beginners in 2022

Investing in crypto is not as complex as most people think. So if you’re curious and optimistic about the rise of crypto, there is no reason to hold back and dive into it. Remember, it is normal for beginner investors to get caught in the cobweb of endless crypto exchanges. As a beginner investor, your objective should focus on the best crypto exchanges to make the right investment decisions. Whether it’s Bitcoin or Ethereum, cryptocurrencies continue to be at the…

Top 10 Cryptocurrencies in January 2022

Cryptocurrencies had a great year in 2021. In this period, we have seen the market go from being classified as a billion-dollar economy into a trillion-dollar economy. Aside from that, cryptocurrencies are gaining visibility in the mainstream world with, for example, El Salvador's adoption of Bitcoin as the official digital currency. As a result, investors are looking for the "new Bitcoin" on the market, hoping to find a great alternative in so-called altcoins. Unfortunately, many traders value an altcoin exclusively…

The Story Of Bitcoin And Ethereum’s Reversed Blockchains

Decentralization is the primary selling point of the three worlds of Bitcoin, crypto, and the web. There are several reasons for this. Some are related to the increased transactional efficiency that decentralization can provide. Others are related to creating permissionless, censorship-resistant digital networks. The most important is that decentralization weakens any single-point-of-failure, hence bolstering network security. This not only keeps a network as close to unbiased and ‘neutral’ as possible but almost guarantees its immutability. Yet the crypto world hasn’t…

What Are the Best Crypto Prediction Sites?

There are now several websites that provide, besides crypto live prices, some forecasts on the future of the leading cryptocurrencies. However, considering the market’s high volatility and the few analysis tools available to the public for formulating these forecasts, it must monitor these portals carefully. This article will report some of the primary sources of price forecasts in the crypto industry. However, we remind you that the information contained in the text does not constitute financial advice, and we invite…

Why Do the Cryptocurrency Prices Go Down on the Weekends?

If you have been in the crypto world for a while, you will probably have noticed a typical behaviour of the market during weekends. With some exceptions, we are used to seeing the price of significant cryptocurrencies drop over the weekend. The phenomenon is known to those who operate in this market, but understanding precisely the causes seems to be rather complex. Therefore, this article will discuss a definitive answer by analyzing the various main factors involved in this market…

How to Track and Stay Updated with Cryptocurrency News

Cryptocurrency is a young market and, as such, very fast-moving. If we exclude the phenomenon of stablecoins, the prices of cryptocurrencies change continuously, with sometimes very high volatility. Since a volatile investment is, by definition, a risky operation, traders usually look for ways to reduce the possibility of incurring significant money losses. In this context, it is vital to stay up to date with market events, even if this can be complex. As seen in the past, a single tweet…

Keeping Consensus: Explaining Ethereum’s Difficulty Bomb

Ethereum’s difficulty bomb is a tool for maintaining network consensus between all classes of participants. This is a challenging task for Ethereum compared to Bitcoin, which performs frequent backwards-incompatible hard-forks. The most significant of these – Ethereum 2.0 – is yet to come. When it does, the difficulty bomb will be crucial in ensuring the community’s smooth transition to the new protocol. Review: Ethereum 2.0 and Proof Of Stake To understand the necessity of the bomb, we must review some…